Wakayama Prefecture’s chosen partner to develop an integrated resort in Wakayama Marina City, Canadian investment firm Clairvest Group, would hold a 55% stake in the property while casino operator Caesars Entertainment Corp is expected to hold a stake. of 5%, according to the details presented to the prefectural assembly.
The development proposal for the area, including the financial plan, was presented on Monday and reviewed by the RI’s special committee. It was the first time that detailed finances around the project were made public.
Under the plan, the 470 billion yen ($4.1 billion) IR operation will be managed by Wakayama IR Co Ltd, an entity currently in the process of being set up. Registered members included Clairvest Neem Ventures (Tokyo) and its parent company Clairvest Group, as well as Caesars Entertainment.
Caesars was announced in September 2021 as a casino operator although the company said no economic investment would be required. The current split instead has Caesars as the 5% investor alongside 55% by Clairvest and 40% by other investors. The initial stakeholder investment would be 145 billion yen ($1.3 billion), with the remainder to be covered by debt, suggesting an investment of around 80 billion yen ($715 million) by Clairvest and 7.25 billion yen (US$63 million) by Caesars.
Pending approval from the national government, the goal is to open the integrated station in fall 2027, Wakayama said.
According to the prefecture’s description, of the 470 billion yen investment, the three major operators will invest an initial amount of 87 billion yen ($753 million) combined. It was also revealed that Japanese companies, including general contractor Nishimatsu Construction Co., Ltd, are ready to invest 58 billion yen ($502 million). Although investment bank Credit Suisse was mentioned as the lead funder for the remaining 325 billion yen (US$2.8 billion), the breakdown of these was not made public. public.
The council had previously asked about the financing and members of the operation at an extraordinary prefectural assembly of the special IR committee in November, but the prefecture and Clairvest said they could not give specific details to this. that time. In response to this, the committee’s consolidated opinion stated as follows: “There are not enough details to explain to local residents and [public briefings] will be postponed at this stage. »
However, this time, the special committee approved the opening of public hearings and public comments which had previously been postponed. Public comments will be accepted for one month from February 9 to March 10.
With Wakayama Prefecture currently in a pre-emergency state – currently in place from February 5 to 27 – as a countermeasure against COVID-19, a public hearing is scheduled for early March.